|
Bullish burst on Wall St.
|
 |
July 2, 1999: 1:38 p.m. ET
Dow anticipates strong 2Q reports, joins Nasdaq, S&P on record track
By Staff Writers Malina Poshtova Zang and Robert Scott Martin
|
NEW YORK (CNNfn) - Wall Street basked in a pre-holiday rally Friday, as the few investors left in the stock market bought transportation, manufacturing and finance stocks in anticipation of a festive earnings season ahead.
Shortly before 1:30 p.m. ET, the Dow Jones industrial average gained 67.12 points to 11,133.54, well beyond its previous closing high of 11,107. On the New York Stock Exchange, advances led declines 1,496 to 1,327 in light trading volume of 375 million shares.
The Nasdaq composite gained 20.72 to 2,726.90 and the S&P 500 index rose 7.22 to 1,388.18, both pushing deeper into record territory. (Click here for a look at today's list of CNNfn's market movers.)
Bonds drifted slightly higher before an early close for the Independence Day holiday as investors shook off news of stronger than expected June job growth and May factory orders. The economy created 268,000 non-farm jobs last month, well above the 220,000 economists had predicted, while orders from U.S. factories climbed 1.1 percent. The bellwether 30-year Treasury bond edged up 4/32 of a point in price, for a yield of 5.99 percent.
All U.S. financial markets will be closed Monday for the Independence Day holiday.
The dollar moved higher against the yen but lost ground against the euro.
Pre-holiday rally
The impending long weekend kept trading in the stock market limited Friday, with many investors already gone for the holiday. In their wake, transportation, manufacturing and finance stocks kept the broader market aloft.
The Dow transports led the way, surging 49.80 points, nearly 1.5 percent, to 3,516.40 as investors scooped up airline shares.
American Airlines parent AMR (AMR), which Friday said it expects "a busy summer for the whole industry," added 1-13/16 to 71-1/2. US Airways (U) shares climbed 5/8 to 46-5/8 and Delta Air Lines (DAL) gained 1-5/16 to 60-5/8.
Among the major finance stocks, Dow component American Express (AXP) rose 4-5/16 to 137-7/16, while fellow blue chip J.P. Morgan (JPM) climbed 1-3/16 to 141-7/16 and Citigroup (C) added 9/16 to 49-1/16.
But it was the manufacturing sector that gave stocks their real upward power. After the factory orders report, industrial stocks surged, with 3M (MMM) gaining 1-7/16 to 88-5/8 and Caterpillar (CAT) adding 1-5/16 to 62-1/2 on the Dow. International Paper (IP) climbed 1-1/2 to 51-1/4.
Warnings, deal buzz add spice
Otherwise, the few market participants left on Wall Street appeared to shrug off the strong jobs data and focus instead on the second-quarter earnings reporting season, due to begin in earnest in the second and third weeks of July.
Shares of hotel and casino operator Mirage Resorts (MIR) tumbled 1-11/16, or 10 percent, to 15-1/16 as investors showed their disappointment with the company's warning that second-quarter results will be sharply below expectations. The company blamed tough competition, disappointing winnings at its gambling tables and the expenses for opening two new resorts. Bear Stearns lowered its rating on the stock to "neutral" from "attractive," and Deutsche Bank Alex. Brown downgraded it to "market perform" from "buy."
HA-LO Industries (HMK) shares also suffered, plunging 3-5/8, or more than 37 percent, to 6-1/4. The promotional products firm said Thursday that slowing growth in some markets would cause second-quarter profits to come in at 2 cents per share, far below estimates of 17 cents. Among the Wall Street research firms voicing their displeasure at the news, ABN Amro and Morgan Stanley both cut their enthusiastic recommendations on the stock to "outperform."
Among the day's deals, shares of Scotsman Industries (SCT) leapt 10-13/16, or nearly 50 percent, to 32-5/8 after British kitchen-equipment maker Berisford (BRFD) said it would buy the refrigerator maker for $712 million in cash. Berisford shares are not traded in the United States.
Finally, Western Wireless (WWCA) shares surged 3-11/32, or 11 percent, to 32-29/32 on unsubstantiated rumors that Dow communications giant AT&T could be looking to buy the rural wireless-telephony provider. 
|
|
|
|
|
 |
|
